On the Role of Paradigms in Finance

Social theory can usefully be conceived in terms of four key paradigms: functionalist, interpretive, radical humanist and radical structuralist. The four paradigms are founded upon different assumptions about the nature of society and each generates distinctive theories, concepts and analytical tools. Finance theory is based on the functionalist paradigm and for the most part finance theorists are unaware of the philosophical tradition to which they belong. By offering an overview of the four paradigms, Kavous Ardalan provides a better understanding of the multifaceted nature of finance. He recommends theorists adopt a diversity of paradigms and discusses its benefits by application to the following phenomena: the development of academic finance, the mathematical language of academic finance, the mathematics of academic finance, money, corporate governance, markets, technology, and education. Contents: Preface; Paradigms; Organization of academic finance paradigm; Structure of academic finance paradigm; Methodology of academic finance paradigm; Theory and practice of academic finance paradigm; Development of academic finance: 4 paradigmatic views; Mathematical language of academic finance: 4 paradigmatic views; Mathematics and academic finance: 4 paradigmatic views; Corporate governance and academic finance; 4 paradigmatic views; Money and academic finance: 4 paradigmatic views; Markets and academic finance: 4 paradigmatic views; Technology and academic finance: 4 paradigmatic views; Teaching and academic finance: 4 paradigmatic views; Conclusion; Bibliography; Index. About the Author: Kavous Ardalan is Professor of Finance at the School of Management, Marist College, USA.